Threshold
Mandatory if taxable turnover > AED 375,000 in 12 months. Voluntary if > AED 187,500 (recover input VAT early). Penalty AED 10,000 late + AED 50,000 + 4% monthly.
5% / 0% / Exempt / Designated Zones
- 5% Standard - most goods/services
- 0% Zero-rated - exports, international transport, education/health (recoverable)
- Exempt - residential rent, bare land, financial services (no recovery)
- Designated zones - out-of-scope for goods (JAFZA etc), 5% for services
Process (Al Asr 3-day)
- Turnover test + docs (trade license, MOA, passport)
- FTA portal TRN application
- Peppol-ready tax invoice setup (5%/0%/exempt tagging)
Need TRN? Free VAT health check → [email protected]